Why we hate changes (part 1)

The main reason why project manager hates changes and project administration is lack of structure. If you do not implement a well-defined structure, you are navigating in chaos.

Recently I reviewed a Project Plan that turned out to be a textbook example of how not to start a project.

I you ever wonder why project managers hates making status or re-schedule, the reason behind is more than likely due to lack of structure.

You simply cannot answer the question: What are the consequences if we remove some requirements?

Requirements

Of course the project has a list of requirements to meet. These requirements are the customer’s attempt to describe their needs. Now, 
our project manager takes it for granted that these requirements are all he needs to deliver. 

That is bad for two reasons: A) they are incomplete and B) we do not make requirements; we live up to them (we think). But right now, let us focus on structure:

The requirements were structured by the customer, e.g. like this:
A-01: Validation of zip code syntax
A-02: Dertermine if customer exists
A-03: Cross-browse compliance
…etcetera..

Cost estimation

Looking at estimation, I saw a very common approach. The project manager had calculated the cost as resources needed, like this:

4 Developers in 1,500 hours
2 Architects in 500 hours
1 Test Manager in 200 hours
2 Testers in 400 hours

A subcontractor, that had to deliver part of the solution, calculated their part like this:

Analyze phase: 300 hours
Design phase: 600 hours
Development: 2,200 hours
Test: 900 hours
Project Management: 500 hours

Fig. 1: There is no traceability between requirements and cost, nor can you accumulate the two cost estimates. It's like mixing apples and oranges and the only common determinator is the grand total.

Oh my… part 1

This is bad. The two calculations are incompatible and the only way we can accumulate our budget is on total hours. 

Actually it is really bad, because we cannot determine how much each of the requirements cost; hence, change management is difficult if not impossible.

If the customer asks us to remove requirement A-02 and reduce the price accordingly, we will be reluctant to do so, because we really do not know the impact.

A final word: The requirements are sort irelevant when calculating the estimate, as we deliver a solution that meet the requirements. Obviously, the project manager must calculate the cost of the solution, not the requirements.

Could this be worse? You bet! Stay tuned for part 2.

The blindfolded project manager

One day in the Project Management Office (PMO) we heard ourselves saying this:“

One of the PMO tasks is to provide an overview of project status. But seeing how project managers act, I really don’t trust the data underneath, which makes all my reporting untrustworthy!
Even worse: I don’t even trust the projects to know their full scope; hence, their estimates, schedule and control are untrustworthy too. It seems we have a common challenge.”

Of course this is generalized a lot, but it had a grain of truth. Some project managers are unconsciously incompetent in their daily work.

The blindfolded project manager

Visualize yourself riding a bike blindfolded. What would that require? You’ll probably ask people around you constantly to report about cars, pedestrians crossing the road; distance to the curb, other bikers and the road’s course.

Now take away the blind and consider how many reports you could do without. You won’t have to get informed about the road’s curse, other bikers, pedestrians or cars and you’ll even not bother about the distance to the curb. You’ve that by intuition. You’re in total control without much effort.

I have met a lot of project managers, project owners and steering committee members, who demand reports and measurements about irrelevant things - sometimes without even knowing why the project was initiated in the first place.

This blog focuses on how a Project Management Office (PMO) can provide project managers tools to “see” instead of running blindfolded and constantly “acquiring reports from others”. It is also about providing better project information for the PMO and the financial department.

What is to see? What is control?

Project Management is about many things exciting to the project manager: Team development, pushing technology, understand customer needs, proper communication, handling politics and building something unique. But it is also being an accountant: Setting the right scope, estimate efforts, determine optimal flow and developing a sound schedule. Most important though, being able to adapt changes and control usage and progress.

What part is most interesting and what part is often boring?

Most people like the freedom and challenge in the first part. Less people are attracted to the accountant work, digging into economy, planning and control. Got it?

If project managers are able to plan and control their project properly they’ll gain confidence in their project to a level where they no longer need reports about everything. They easily see it for themselves.

In this blog I will write about our steps getting better to spot problems, be more predictable and mature so we can focus more on the fun part and make the boring part simple routine.